Table 14-9
Consider the following demand and cost information for a monopoly.

-Refer to Table 14-9.What is the marginal cost of the 4th unit?
A) $4
B) $14
C) $31
D) $62

Question

Table 14-9
Consider the following demand and cost information for a monopoly.
 
-Refer to Table 14-9.What is the marginal cost of the 4th unit?
A) $4 
B) $14 
C) $31 
D) $62

Quizplus · Accepted Answer

The marginal cost is the change in total cost from producing one additional unit. Therefore, the marginal cost of the 4th unit is the difference between the total cost of 4 units and 3 units, which is $56 - $42 = $14. The best choice is B.

Table 14-9 Consider the Following Demand and Cost Information for a Monopoly